Insta
Pompeo’s Warning To IMF: Pakistan May Not Be Able To Take Loans From IMF To Pay Back China
US Secretary Of State Mike Pompeo will be watching any IMF assistance to Pakistan (Joe Raedle/Getty Images)
In an interview to CNBC Television, US Secretary of State Mike Pompeo warned against any bailout from International Monetary Fund (IMF) to Pakistan that would be used to payoff Chinese loans, Reuters has reported.
“Make no mistake. We will be watching what the IMF does. There’s no rationale for IMF tax dollars, and associated with that American dollars that are part of the IMF funding, for those to go to bail out Chinese bondholders or China itself,” Pompeo told CNBC Television.
Pakistan has $5 billion loans from China and its banks. It is also seeking $1 billion loans to stabilise its falling foreign currency reserves. The new Pakistan government will be facing an economic crisis once enters office. According to Bloomberg, Pakistan’s foreign exchange are at $9.1 billion, which is insufficient to pay for its imports and maintain stability of its currency.
The $57 billion China-Pakistan Corridor which has lead to Chinese imports has worsened Pakistan’s Current Account Deficit in recent times. United States’ warning to IMF is bad news for those hoping for a recovery of Pakistani economy.
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.
Latest
